VirnetX Holding Corporation is asking for $532 million from Apple for using patented technology for communication services like FaceTime, iMessage and more, the firm told a federal jury today, according to Bloomberg.

virnetx

“Apple hasn’t played fair. They have taken Virnetx’s intellectual property without permission,” VirnetX lawyer Brad Caldwell of Caldwell Cassady told the jury in Tyler, Texas.

Greg Arovas, Apple's lawyer, said that Apple believes in "fairness and protecting intellectual property," noting that VirnetX "keeps moving the boundary" and asking for "more and more and more" money. In 2012, the firm was awarded $368 million in a jury trial. However, the decision was thrown out in 2014 as the verdict was influenced by the instructions given to the jury during the trial.

The patent suit can be traced back to 2010 over a pair of patents related to virtual private networking (VPN) connectivity. This retrial, which will last through next week, will largely focus on whether any VirnetX patents are infringed in either FaceTime or iMessage. Apple was already found to be infringing the patents with its VPN On Demand service. Apple cannot make the same arguments they made in the first trial, however.

VirnetX makes a majority of its revenue on patent licensing. Arovas said that, on a per-unit basis, VirnetX's $200 million settlement with Microsoft over similar violations is less than a tenth of what its currently seeking against Apple.

Top Rated Comments

BrodieApple Avatar
82 months ago
Patent trolls
Score: 7 Votes (Like | Disagree)
MH01 Avatar
82 months ago
Cue the Apple haters in 3...2...1...
cue the first trolling comment in.....1

You might want to read the article, not much love on MR for patent trolls.
Score: 5 Votes (Like | Disagree)
oneMadRssn Avatar
82 months ago
Patent company shells should be illegal. Either you use your patents to build something, you license them out at a fair price or you sell them to a company which complies to these previous rules.

What we must not forget that many of these trials are perfectly orchestrated by law 'engineers' with a hidden agenda. While the law might be quite the matrix for most of us, the techniques they use in the end, look baffling easy.

In these reigns where stakes are unbelievably high, many things don't look like they are. It's well possible that a patent troll sueing company X is in fact somewhere owned by company X.
I don't think this company is breaking you proposed "rules" at all.

First, isn't litigation a way of achieving the "license them out at a fair price" principle you want? How do you get someone to pay anything at all without being willing to enforce the law? Without threat of litigation, nobody would pay anything.

Second, what about universities and the patent portfolios they develop from their research labs? Often licensing pays for future research grants, but sometimes litigation is needed to get those that refuse to pay at all.

Third, what about financiers? We need investors (venture capital, or otherwise) to invest in startups. Since often startups don't work out, they need some collateral to secure their investment. Often IP is the only asset small startups have to offer. Shouldn't the investors be able to recoup some of their losses in that scenario by licensing, and litigating where needed, that IP?
Score: 3 Votes (Like | Disagree)
Devie Avatar
82 months ago
Patents are obviously very important, but you should not be able to patent such broad or basic ideas

Or I should patent the method of putting pants on and sue everyone
Score: 2 Votes (Like | Disagree)
Kajje Avatar
82 months ago
Patent company shells should be illegal. Either you use your patents to build something, you license them out at a fair price or you sell them to a company which complies to these previous rules.

What we must not forget that many of these trials are perfectly orchestrated by law 'engineers' with a hidden agenda. While the law might be quite the matrix for most of us, the techniques they use in the end, look baffling easy.

In these reigns where stakes are unbelievably high, many things don't look like they are. It's well possible that a patent troll sueing company X is in fact somewhere owned by company X.
Score: 2 Votes (Like | Disagree)
4jasontv Avatar
82 months ago
What? Could you explain this to me? I mean, I guess I get that a subsidiary could sue another subsidiary, but...why?
I'm not really familiar with the case, but I can justify the comment. Let's say you own two companies, X and Y. X sues Y for an absurd amount, and you tell the people at Y not to fight it. X wins. Now you approach companies A, B, and, C and say look what the courts say is "fair". We only want payout * 30%. If you fight them you risk going against precedent and paying a higher rate. They might even get special treatment because they did t try and gouge you at first.
Score: 1 Votes (Like | Disagree)

Popular Stories

maxresdefault

Unbox Therapy Shares Hands-On Look at iPhone 14 Pro Max Replica

Monday May 16, 2022 4:40 am PDT by
YouTuber Unbox Therapy has shared a hands-on look at the iPhone 14 Pro Max using what he claims is a one-to-one replica created by third-party case makers with access to detailed schematics and dimensions for Apple's new upcoming flagship smartphone. As with the iPhone 13 Pro lineup, in 2022, we are expecting a 6.1-inch iPhone 14 Pro and a 6.7-inch iPhone 14 Pro Max, but this time the Pro...
macOS Monterey 2

Apple Releases macOS Monterey 12.4 With Support for Studio Display Webcam Update

Monday May 16, 2022 10:10 am PDT by
Apple today released macOS Monterey 12.4, the fourth major update to the macOS Monterey operating system that launched in October 2021. macOS Monterey 12.4 comes over two months after the launch of macOS Monterey 12.3, an update that added Universal Control. The ‌‌‌‌‌macOS Monterey‌‌ 12.4 update can be downloaded on all eligible Macs using the Software Update section of System...
iOS 15

Apple Releases iOS 15.5 and iPadOS 15.5 With Wallet and Podcast Updates

Monday May 16, 2022 10:00 am PDT by
Apple today released iOS 15.5 and iPadOS 15.5, the fifth major updates to the iOS and iPadOS 15 operating systems that were initially released in September 2021. iOS and iPadOS 15.5 come a little over two months after the launch of iOS 15.4 and iPadOS 15.4. The iOS 15.5 and iPadOS 15.5 updates can be downloaded for free and the software is available on all eligible devices over-the-air in...
iOS 16 mock for article

Gurman: iOS 16 to Include New Ways of System Interaction and 'Fresh Apple Apps'

Sunday May 15, 2022 6:14 am PDT by
iOS 16 will include new ways of interacting with the system and some "fresh Apple apps," Bloomberg's Mark Gurman has said, offering some more detail on what Apple has in store for the upcoming release of iOS and iPadOS set to be announced in a few weeks at WWDC. In the latest edition of his Power On newsletter, Gurman wrote that while iOS 16 is not likely to introduce a major face-lift to...
Prosser Series 8 3

Apple Watch Series 8 Rumored to Feature New Design With Flat Display

Wednesday May 18, 2022 6:21 am PDT by
The Apple Watch Series 8 could feature an all-new design with a flat display, according to the leaker known as "ShrimpApplePro." In his latest video on the YouTube channel Front Page Tech, Jon Prosser highlighted information from ShrimpApplePro that suggests the Apple Watch Series 8 could feature a flat display in what seems to be a design originally rumored for the Apple Watch Series 7. ...
Whatsapp Feature

WhatsApp to Let Users Leave Group Chats 'Silently' and View Rich Link Previews in Status Updates

Tuesday May 17, 2022 3:07 am PDT by
WhatsApp is working on a new feature that will allow users to "silently" leave group chats hosted by the messaging platform instead of all members of the group being notified when they do. As it stands, when someone leaves a group chat, WhatsApp announces their exit to the entire group, making the act of leaving very public. It's not possible right now to leave a group quietly, but WhatsApp...
apple tv 4k design green

Apple Releases tvOS 15.5 for Apple TV HD and Apple TV 4K

Monday May 16, 2022 9:57 am PDT by
Apple today released tvOS 15.5, the fifth major update to the tvOS operating system that first launched in September 2021. tvOS 15.5 comes more than two months after the release of tvOS 15.4, an update that brought support for captive WiFi networks. tvOS 15.5 can be downloaded over the air on the Apple TV through the Settings app by going to System > Software Update. ‌‌‌‌‌‌Apple...